Staffing Industry Analysts (SIA) reports that a bill to codify the ABC test for classifying workers has been approved by a Senate committee and moved towards enactment:
In California, the Senate’s Labor, Public Employment and Retirement Committee approved a bill that codifies the 2018 “Dynamex” decision by California’s Supreme Court to adopt the stricter “ABC test” for determining independent contractor misclassification. The legislation will now go to the Senate Appropriations Committee; it has already been approved by the House.
“Although it was encouraging to see Assembly Bill 5 amended to allow in a few more independent contractor classifications, millions of small businesses still await a safe harbor away from the California Supreme Court’s Dynamex decision that will take from them their chosen livelihoods by forcing them to be employees of someone,” said John Kabateck, state director of the National Federation of Independent Business in response to the bill.
In an item written before the committee’s decision on Wednesday, Allan Zaremberg, president of the California Chamber of Commerce, had called on the legislature to protect the gig economy.
“The Legislature must get off the sidelines and set the ground rules for the networked, innovative, on-demand economy, not by rolling back the clock as if the gig economy doesn’t exist, but by recognizing and supporting nontraditional workers,” Zaremberg wrote.